Wednesday, November 7, 2018

PH, Japan finalize details of P18-billion MRT3 rehab loan

(UPDATED) – The governments of the Philippines and Japan finally exchanged notes on the long-delayed loan agreement for the rehabilitation of the Metro Rail Transit Line 3 (MRT3).

An exchange of notes means the details of the project and financing arrangement have been ironed out. It comes before the actual signing of agreements.

On Wednesday, November 7, Philippine Foreign Secretary Teodoro Locsin Jr and Japanese Ambassador to the Philippines Koji Haneda exchanged notes on the MRT3 rehabilitation loan deal at the Department of Foreign Affairs, witnessed by Railways Undersecretary Timothy John Batan.

"We all know that a safe and eco-friendly transport system is crucial to the Greater Manila Area and to the Philippines as a whole to realize sustainable economic growth and comfortable life for Filipinos. This is precisely where Japanese technology and expertise from years of railway experience come in," Haneda said in his speech.

The signing of the loan agreement will be done on Thursday, November 8, at the Department of Finance.

Ahead of the loan deal signing, Japan's Sumitomo-Mitsubishi Heavy Industries (MHI) already returned as maintenance provider in October. Sumitomo-MHI is the original builder of the MRT3 railway system and maintained it until 2012.

Back in August, the National Economic and Development Authority (NEDA) Board Investment Coordination Committee-Cabinet Committee (ICC-CabCom) approved the P22.06-billion MRT3 rehabilitation project.

It is 80% funded by the Japanese loan, while the remaining amount will be shouldered by the Philippine government. The project is expected to be completed by the 1st quarter of 2021.

Helicopter parts

The two governments also signed notes on Japan's donation of "no longer needed" UH-1H helicopter parts and maintenance equipment to the Philippine Air Force.

This was done on the basis of the Philippine government's request, to enhance the capabilities of the Philippine Air Force to carry out humanitarian activities.

"The project we signed today will mean closer partnership between our defense [agencies]. I hope we can identify and implement projects beneficial for us in the future," Haneda said.

Defense Secretary Delfin Lorenzana witnessed the signing.

PHL, Japan exchange notes for MRT3 rehab

The governments of the Philippines and Japan on Wednesday exchanged notes for the rehabilitation of the Metro Rail Transit Line 3.

The Philippine government was represented by Foreign Affairs Secretary Teodoro Locsin Jr., while the Japanese government was represented by Ambassador of Japan to the Philippines Koji Haneda.

Locsin and Haneda exchanged notes on the MRT3 rehabilitation loan deal at the Department of Foreign Affairs main office in Pasay City.

The exchange of notes was witnessed by Transportation Undersecretary for Railways Timothy John Batan.

Under the Exchange of Notes, Japanese company Sumitomo-Mitsubishi Heavy Industries will return as the firm in charge of the maintenance and rehabilitation of the MRT3.

Sumitomo-Mitsubishi Heavy, as the original MRT3 maintenance contractor, has designed and built the line, as well as maintained it in its first 12 years.

The exchange of notes will be followed by the signing of a loan agreement on Thursday, November 8. — MDM, GMA News

http://www.gmanetwork.com/news/money/companies/673876/phl-japan-exchange-notes-for-mrt3-rehab/story/

Tuesday, November 6, 2018

De Lima slammed for 'misleading' views on infra projects

The Department of Transportation (DOTr) and the Department of Public Works and Highways (DPWH) slammed detained Senator Leila De Lima for her "misleading" views that the two key projects under the "Build, Build, Build" program of the Duterte administration would displace hundreds of thousands of informal settler families in Metro Manila.

“The Department of Transportation and the Department of Public Works and Highways strongly urge Senator Leila de Lima to get her facts straight, on the heels of her call for the Senate to investigate two Build, Build, Build projects which she claims will displace over 180,000 families in Metro Manila,” the DOTr and DPWH said on their joint statement on Tuesday.

This, as De Lima has asked the Senate to conduct a probe into the construction of the North Luzon-South Luzon Expressway (NLEX-SLEX) Connector Road and the North South Commuter Railway (NSCR) Project claiming this could displace over 180,000 families in Metro Manila.

Both the departments explained that the number of informal settler families affected by the NSCR Project is at 94,132 across the National Capital Region, Central Luzon, CALABARZON and Bicol.

The NSCR Project consists of the following segments: PNR Clark 1 (38-km, Tutuban-Malolos), PNR Clark 2 (51-km, Malolos-Clark), PNR Calamba (56-km, Manila-Calamba), and PNR Bicol (653-km, Manila-Matnog; Batangas).

“Contrary to the Senator's figures, the estimated number of likely affected ISFs (informal settler families) is 344 for PNR Clark 1; 1,173 for PNR Clark 2; 11,384 for PNR Calamba; and 1,700 for the NLEX-SLEX Connector Project. For PNR Bicol, the previous estimate of 79,531 ISFs will be greatly reduced because of the DOTr and PNR's approach of exploring re-alignments to avoid displacement of persons, to minimize conflict with road traffic and structures, and to straighten curves to achieve faster operating speeds,” the statement read.

“Even assuming the number of affected ISFs for PNR Bicol is not reduced (which it will), the total number of affected ISFs at 94,132 across four regions is far apart from the good Senator's erroneous estimation, which unnecessarily misleads the public on the true scale of the projects’ impact,” it added.

The DOTr and DPWH likewise noted that the acquisition of the right of way for the NLEX-SLEX Connector and the NSCR are in accordance with the provisions of Republic Act 10752 or the Right of Way Act and Republic Act 7279 or the Urban and Housing Development Act.

Public consultation meetings, they argued, had also been conducted by the local interagency committees in various affected areas.

Furthermore, all four phases of the NSCR Project are separately funded by the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and China.

“Borrower countries such as the Philippines are required to ensure compliance not just with all applicable local laws and regulations on land acquisition and resettlement, but also with the ADB’s Safeguard Policy Statement and JICA's Guidelines for Social Considerations. This means that part of project preparation and implementation is a comprehensive evaluation of the project’s potential social impact, and the implementation of measures that will ensure that affected persons are left "no worse off," as required under ADB and JICA Social Safeguards,” according to the DOTr and DPWH.

Both departments stressed that the implementation of these projects are necessary to facilitate ease of movement among commuters and boost economic growth in the region.

“It bears repeating that these projects are long overdue, and are ultimately meant to alleviate the decades-long suffering of thousands of Filipino commuters in Luzon. Moreover, these projects are poised to economically transform the regions, ferrying in commerce, and increasing incomes faster than before. The DOTr and the DPWH, under the Duterte Administration, remain steadfast in its goal of giving a better life for all Filipinos, and will not be diverted by criticisms anchored on false and misleading data,” the DOTr and DPWH said.

De Lima has filed Senate Resolution No. 927 which urged the appropriate Senate committee to look into the impending demolition of thousands of residents’ homes in 38 communities in Manila affected by the construction of the PHP23 billion NLEX-SLEX Connector Road and the PHP171 billion NSCR Project which are scheduled to be rolled out next year.

According to the senator, these two construction projects will result in the massive demolition of houses in at least 38 barangays in Manila composed mainly of homes and small businesses. (PNA)

De Lima criticisms ‘inaccurate, misleading’ – DOTr, DPWH

Two government agencies urged Sen Leila De Lima on Tuesday to “get her facts straight” after her remarks on the administration’s “Build Build Build” program.

Filing a Senate Resolution No. 927, De Lima called for a Senate probe on the Build Build Build project, citing that the construction of the P23 billion North Luzon Expressway—South Luzon Expressway (NLEX-SLEX) Connector Road Project and the P171 billion North-South Commuter Railway (NSCR) Project would displace 180,000 families in Metro Manila.

“Some residents of Sampaloc, Manila, have long been apprehensive of their forcible eviction and relocation to give way for the construction of these projects. They have repeatedly stressed that the concerned agencies have failed to adequately consult with them concerning the right-of-way negotiations,” she added.

The Department of Transportation (DOTr) and the Department of Public Ways and Highways (DPWH) said that the statement of the detained senator was “inaccurate and misleading”

The DOTr noted that the NSCR general project that De Lima cited consist of four different projects, namely PNR Clark 1, PNR Clark 2, PNR Los Banos, and PNR Bicol.

Despite the huge scope of the NSCR project, the department said that this would not affect the 38 barangays in Manila, contrary to the claim of De Lima.

It also said that the four phases of the NSCR Project are separately financed by the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and China, “a fact conveniently missed by the good Senator.”

“The DOTr and DPWH stress that contrary to what the good Senator may have intentionally or unintentionally misstated, the Informal Settler Families (ISF) affected by the NSCR Projects are not confined to 38 Barangays in Manila, but are rather spread across Region III (Central Luzon), National Capital Region, Region IV-A (CALABARZON), and Region V (Bicol),” the two agencies said in a joint statement.

“It is also stressed that contrary to the Senator’s figures, the estimated number of likely affected ISFs is 344 for PNR Clark 1; 1,173 for PNR Clark 2; 11,384 for PNR Los Banos; and 1,700 for the NLEX-SLEX Connector Project. For PNR Bicol, the previous estimate of 79,531 ISFs will be greatly reduced because of the DOTr and PNR’s approach of exploring re-alignments to avoid displacement of persons, to minimize conflict with road traffic and structures, and to straighten curves to achieve faster operating speeds.” it added.

Both the DPWH and the DOTr also said that the acquisition of the right of way for the NLEX-SLEX Connector Road and NSCR project are guided by the provisions of the Right of Way Act (RA 10752) and the Urban Development Housing Act (RA 7279)

The two departments then vowed that the projects of the administration would provide “better life” to the public once finished.

“The DOTr and the DPWH, under the Duterte Administration, remain steadfast in its goal of giving a better life for all Filipinos, and will not be diverted by criticisms anchored on false and misleading data,” it said. /cbb

IN THE KNOW: NLEx-SLEx connector road, North-South Commuter Railway

The North Luzon Expressway (NLEx)-South Luzon Expressway (SLEx) connector road project is an 8-kilometer elevated expressway that will cut travel time between NLEx to SLEx from over two hours to 15-20 minutes.

The P23.3-billion connector road will run from the terminal of Segment 10 on C-3 Road in Caloocan City up to SLEx, mostly passing through the Philippine National Railways tracks.

Manuel V. Pangilinan-led Metro Pacific Investments Corp., through Manila North Tollways Corp., signed a 37-year contract in November 2016 to finance, design, construct, operate and maintain the road project, which is set to start construction in May 2019.

Some 3,500 informal settlers in 38 barangays and 1,043 privately owned lots with a total land area of 8.7 hectares would be affected by the project, the city government of Manila said in November last year.

Detained Sen. Leila de Lima said in a statement last week that about 180,000 families would be displaced in the demolition of houses and shops to give way to the NLEx-SLEx connector road project and the P171-billion North-South Commuter Railway Project.

North-South Commuter Railway Project

The 653-km south line of the North-South Railway Project is poised to be the biggest public-private partnership project to date.

It will run from Manila to Legazpi City in Albay province.

It will consist of commuter railway operations between Tutuban in Manila and Calamba, Laguna, as well as long-haul railway operations between Tutuban and Legazpi City.

The project, among the public-private partnership deals left hanging by the previous administration, is being reviewed by the Department of Transportation, according to the Public-Private Partnership Center website.

Five Filipino conglomerates acquired bid documents in February 2016 to operate, maintain and upgrade the line over a period of 34 years.

The line is expected to service 316,000 passengers a day in its opening year and is projected to entice around 44,000 public and private vehicle users to shift their commutes to the modernized railway.

Sources: Inquirer Archives, dpwh.gov.ph

Friday, November 2, 2018

Expect ‘brand new’ MRT3 after Japan-funded rehab, says DOTr exec

Commuters can expect better services and facilities once the Japanese loan-funded rehabilitation of the glitch-plagued Metro Rail Transit Line 3 is finished, a top official of the Department of Transportation (DOTr) said Friday.

"Kapag natapos ang rehab na ito parang meron tayong brand new MRT3," Transportation Undersecretary for Railways Timothy John Batan said in an interview on GMA News TV's News to Go.

Batan earlier said the governments of the Philippines and Japan are set to sign the P18-billion loan agreement for the rehabilitation and maintenance of MRT3 on November 7.

The loan agreement will pave the way for the return of Sumitomo-Mitsubishi Heavy Industries—the designer and builder of the railway system—as the maintenance contractor of the MRT3.

The rehabilitation will cover the trains, the radio system, the CCTV system, the signaling system, the power supply system, and the public address system.

The contractor is also expected to fix the rail tracks, road rail vehicles, depot equipment, elevators and escalators, and other station-building equipment.

"'Yung scope of work ng JICA (Japan International Cooperation Agency) rehab ay 'yung ayusin lahat ng kailangan ayusin sa MRT3 para ma-restore sa original designed and condition nito. Covered 'yun lahat gaya ng overhauling ng 72 na bagon, total reconditioned sa mga riles natin pati ung power supply ia-upgrade, 'yung signalling system at CCTV natin papalitan," Batan said.

"Isa 'yun sa dahilan kung bakit natin kinuha ang unang nag-design at nag-construct, dahil sa nangyari sa MRT3, sa kundisyon niya ngayon ay maraming sira at maramig ayusin, ang solusyon ay kunin ang original na designer at developers ng MRT3," the DOTr official said.

The overall rehabilitation of MRT3 is expected to take 43 months—31 months for simultaneous rehabilitation and maintenance works and 12 months for the contractor’s "defect liability period." — Ted Cordero/RSJ, GMA News

MPIC to review terms in rehabilitation bid for MRT-3

Metro Pacific Investments Corp.(MPIC) said it would have to review the terms for the rehabilitation, operation and maintenance contract of the Metro Rail Transit Line 3 system before submitting a bid, after the chief of the transportation department said it is eyeing a solicited bidding for the project.

Department of Transportation (DOTr) Secretary Arthur Tugade was quoted as saying in news reports that he wants to change the bidding scheme for MRT-3 to a solicited bidding, despite MPIC being awarded an original proponent status (OPS) for the project last year for its unsolicited proposal.

“I will make it solicited. The package will be lock, stock and barrel,” Tugade reportedly said.
MPIC chairman Manuel V. Pangilinan said he has read about these reports, but they still have not received any official communication from the DOTr.

“There has been no official communications. So we just have to take his word for it. Assuming the press statements attributed to him are correct,” he said.

Asked if the company is planning to submit a solicited bid, Pangilinan said they would still have to review the terms of the project.

“It depends pretty much on the terms, so we have to review,” he said.

MPIC, through a consortium with Ayala Corp., earlier submitted an unsolicited proposal to upgrade and rehabilitate MRT-3.

Under the proposal, the firm would invest about P12 billion to rehabilitate the train system and there would be no increase in fares for at least two years.

MPIC first submitted a $500-million proposal to rehabilitate MRT-3 in 2011.

The proposal was thumbed down, however, as the offer involved hiking fares.

Pangilinan earlier said the company plans to buy out the government’s stake and other shareholders of the MRT-3 system which runs from North Avenue in Quezon City to Taft station in Pasay.

Thursday, November 1, 2018

2 infra projects may displace 180,000 families – De Lima

Two multibillion-peso projects under the Duterte administration’s “Build, Build, Build” infrastructure program will displace about 180,000 families, according to opposition Sen. Leila de Lima.

The detained senator is seeking a Senate inquiry into the plan to demolish thousands of houses to pave the way for the construction of the P171-billion North-South Commuter Railway Project and the P23-billion North Luzon Expressway-South Luzon Expressway (NLEx-SLEx) Connector Road Project.

Senate Resolution No. 927

In proposing Senate Resolution No. 927, De Lima, chair of the Senate committee on social justice, welfare and rural development, wants to look into the social cost of the projects.

“Mega-infrastructure projects such as these rarely, if at all, mention the social costs of these endeavors, particularly the physical and economic displacement of thousands of people just to give way for their construction in Metro Manila’s densely populated areas,” she said in a statement.

She cited apprehensions of residents in Manila’s Sampaloc district about looming forcible eviction and relocation in their communities.

Projects’ rollout

“They have repeatedly stressed that the concerned agencies have failed to adequately consult with them concerning the right-of-way negotiations,” De Lima said.

The NLEx-SLEx project and the North-South railway project are to be rolled out this year.

De Lima said the projects would result in the demolition of houses and shops in at least 38 barangays in Manila and displace about 180,000 families.

Wednesday, October 31, 2018

After delay, Philippines, Japan to sign MRT3 rehab loan deal on November 7

The P22.06-billion MRT3 rehabilitation project will mostly be funded by an P18-billion loan from the Japanese government

After months of delay, the governments of the Philippines and Japan are set to sign a loan agreement for the rehabilitation of the Metro Rail Transit Line 3 (MRT3) on November 7.

The signing of the P18-billion deal with the Japan International Cooperation Agency (JICA) was confirmed by Railways Undersecretary Timothy John Batan in a press briefing on Wednesday, October 31.

"The signing of the loan agreement was finalized, and the agreed date is November 7, so it's in a few days," Batan said in a mix of English and Filipino.

Back in August, the National Economic and Development Authority (NEDA) Board Investment Coordination Committee-Cabinet Committee (ICC-CabCom) approved the P22.06-billion MRT3 rehabilitation project.

It will mostly be funded by the Japanese loan, while the remaining amount will be shouldered by the Philippine government. The project is expected to be completed by the 1st quarter of 2021.

Entry of maintenance provider: Batan added that Sumitomo-Mitsubishi Heavy Industries (MHI) returned as maintenance provider starting October 15, ahead of the loan deal signing.

Sumitomo-MHI built and designed the MRT3 railway system from 1998 to 2000, and maintained it until 2012.

"The return of our Japanese maintenance provider started October 15. They agreed even in advance of our loan agreement [signing] and Exchange of Notes and contract. This is the commitment of the government of Japan to accelerate the process," Batan said.

More trains, eventually? Asked when more trains would be deployed, Batan did not give a definite timeline.

The MRT3 began deploying the controversial China-made Dalian train on October 27, with an initial 3 train cars introduced to the system.

Batan said all 48 Dalian train coaches will have to undergo a 1,000-kilometer test during off-revenue hours, other functionality tests and examinations by Germany's TUV Rheinland and Japan's Toshiba Infrastructure Systems, and a final validation by the Philippine National Railways.

Of the 48, only 14 have completed the test run. This already includes the 3 train cars introduced to the MRT3.

https://www.rappler.com/business/215650-philippines-japan-sign-mrt3-rehabilitation-loan-deal-november-7-2018

PH to sign P18.5B-loan pact with Japan for MRT-3 rehab on Nov 7

The Philippines and Japan are set to sign a loan agreement for the rehabilitation of the Metro Rail System-3 (MRT-3) on November 7, Transport Undersecretary Timothy John Batan disclosed Wednesday.

“Na-finalize na ‘yung signing date natin for both the exchange of notes and the loan agreement on November 7, which is going to be next week,” Batan said in a press conference.

Last August, the National Economic and Development Authority’s Investment Coordination Committee-Cabinet Committee (Neda ICC-CabCom) approved the P22.1-billion MRT-3 rehabilitation project, which is expected to start in the third quarter of this year and seen to be completed in the first quarter of 2021.

In September, the Japanese government through the Japan International Cooperation Agency (Jica) offered a 38.1-billion yen (about P18.5 billion) loan to rehabilitate MRT-3.

The rehabilitation of MRT-3, which will be implemented by the DOTr, will increase the number of train sets in operation per hour from 15 to 18, while also increasing the maximum speed to 60 kilometers per hour and decreasing the headway to 200 seconds.

READ: Aging MRT 3 set for rehab as PH, Japan move to sign loan terms

Batan also said that Sumitomo-Mitsubishi Heavy Industries (MHI) returned as the maintenance provider of MRT-3 starting October 15, even if it was ahead of the loan agreement signing, just to speed up the process.

“The return of our Japanese rehabilitation maintenance provider has started last October 15. They agreed na kahit na in advance of our loan agreement, our exchange of notes and contract. Ito ang commitment ng government of Japan to accelerate the process,” Batan said.  /kga

https://business.inquirer.net/259827/ph-to-sign-p18-5b-loan-pact-with-japan-for-mrt-3-rehab-on-nov-7